Tax Evasion: - A Study of Swedish Firms’ Compliance Due to Audits
Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Tax agencies spend a lot of resources in overseeing tax evasion, without truly knowing what the effect on compliance is. The research area concerning the effects of audits is understudied, however more knowledge exists concerning the impact on individuals rather than on the impact on firms. The objective of this thesis is to examine the plausible behavioural changes among Swedish firms due to audits. The thesis is based on firms’ own reported VAT returns; it is their own behavioural change that is estimated, and not an involuntary change due to enforced payments or fines. The visible effects are solely due to the firm’s awareness of the supervision of the Swedish Tax Agency. The results, from a fixed effects regression, indicate that the audit do affect the firms’ level of compliance. The probability of an increased reported turnover is significant both at the extensive margin but also at other intervals. For the input VAT effects can be observed at several intervals, however not at the extensive margin.
Place, publisher, year, edition, pages
Tax evasion, Audit, VAT
IdentifiersURN: urn:nbn:se:uu:diva-203604OAI: oai:DiVA.org:uu-203604DiVA: diva2:637064
Engström, Per, Lektor
Elinder, Mikael, Biträdande lektor